New Delhi: State-run oil firms On February 16 deferred the fortnightly revision of petrol and diesel prices in view of excessive volatility in international oil markets.

Retail petrol and diesel prices should have gone up by close to Re one per litre each in view of the spike in global crude oil prices, which breached $ 37 a barrel mark last week on heightened tension in the Middle East.

"Considering the volatile situation in the international oil market, due to the possibilities of a US-led attack on Iraq, oil companies have decided to watch the price situation and defer the decision to revise the prices of petrol and diesel this fortnight," Indian Oil Corporation (IOC) said in a press statement.

The spurt in international crude oil prices had forced oil firms to raise petrol and diesel prices by about Re one per litre on January 3 and about 40 paise each on January 16 and February 1.

"Oil companies will wait for another fortnight for crude prices to stabilise. The next price revision, due on March 1, would also have the benefit of Union Budget, which is expected to announce duty relief to check volatility," highly placed sources said.

Sources said Finance Ministry was likely to announce fixed excise duty rate instead of present ad valorem rates, which inflate retail prices every time the procurement cost of crude oil goes up.

Besides, the Petroleum Ministry had also pleaded for a cut in excise duty on petrol products and import duty on crude oil to reduce the impact of high crude prices on domestic markets, they said.

PTI